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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington D.C. 20549

FORM 10-QSB

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended **September 30,
2007**

[   ] TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to ______

Commission file number: **000-28837**

NEW JERSEY MINING COMPANY(Exact name of registrant as specified in its charter)

|Idaho                        | 82-0490295                       
|---------------------------- | ---------------------------------
|(State or other jurisdiction | (IRS employer identification no.)
|of incorporation)            |                                  

89 Appleberg Road, Kellogg, Idaho 83837(Address of principal executive offices)

Registrants telephone number, including area code:
**(208) 783-3331**

|Common Stock        | The OTC-Bulletin Board               
|------------------- | -------------------------------------
|Title of each class | Name and exchange on which registered

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(D) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period
as the registrant was required to file such reports), and (2) has been
subject to filing requirements for the past 90 days. Yes [X]  
No [   ]

Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act) Yes [  
]   No [X]

On October 29, 2007, 31,282,012 shares of the registrants
common stock were outstanding.

Transitional Small Business Disclosure Format (Check one): Yes
[   ]   No [X ]

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NEW JERSEY MINING COMPANY 
  QUARTERLY REPORT ON FORM 10-QSBFOR THE QUARTERLY PERIODENDED SEPTEMBER 30, 2007

TABLE OF CONTENTS

|                               |                                                                                             | Page
|------------------------------ | ------------------------------------------------------------------------------------------- | ----
|                               |                                                                                             |     
|PART I  FINANCIAL INFORMATION |                                                                                            
|                               |                                                                                             |     
|Item 1:                        | Financial Statements                                                                        | 3   
|                               |                                                                                             |     
|Item 2:                        | Managements Discussion and Analysis of Financial Condition
      and Results of Operations | 8   
|                               |                                                                                             |     
|Item 3:                        | Controls and Procedures                                                                     | 11  
|                               |                                                                                             |     
|PART II  OTHER INFORMATION    |                                                                                            
|                               |                                                                                             |     
|Item 1:                        | Legal Proceedings                                                                           | 11  
|                               |                                                                                             |     
|Item 2:                        | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 11  
|                               |                                                                                             |     
|Item 3:                        | Defaults Upon Senior Securities                                                             | 12  
|                               |                                                                                             |     
|Item 4:                        | Submission of Matters to a Vote of Security Holders                                         | 12  
|                               |                                                                                             |     
|Item 5:                        | Other Information                                                                           | 12  
|                               |                                                                                             |     
|Item 6:                        | Exhibits and Reports on Form 8-K                                                            | 12  
|                               |                                                                                             |     
|SIGNATURES                     | 13                                                                                         

[The balance of this page has been intentionally left blank.]







2

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PART I-FINANCIAL INFORMATION

Item 1: FINANCIAL STATEMENTS

NEW JERSEY MINING COMPANY(A Development Stage
Company)BALANCE SHEETSeptember 30, 2007(Unaudited)

|ASSETS                                                                 |   |            |  
|---------------------------------------------------------------------- | - | ---------- | -
|Current assets:                                                        |   |            |  
|Cash and
      cash equivalents                                        | $ | 388,802    |  
|Investment in marketable
      equity security at market (cost-$7,003) |   | 437,700    |  
|Interest
      receivable                                              |   | 2,824      |  
|Inventory                                                              |   | 36,476     |  
|Total current assets                                                   |   | 865,802    |  
|                                                                       |   |            |  
|Property, plant, and equipment, net of
      accumulated depreciation  |   | 1,560,686  |  
|Mineral properties, net of accumulated amortization                    |   | 923,460    |  
|Reclamation bonds                                                      |   | 123,676    |  
|                                                                       |   |            |  
|Total assets                                                           | $ | 3,473,624  |  
|                                                                       |   |            |  
|LIABILITIES AND STOCKHOLDERS EQUITY                                   |   |            |  
|                                                                       |   |            |  
|Current liabilities:                                                   |   |            |  
|Accounts payable                                                       | $ | 50,733     |  
|Accrued
      payroll and related payroll expenses                     |   | 42,275     |  
|Obligation under capital
      lease-current portion                   |   | 37,592     |  
|Notes
      payable-current portion                                    |   | 116,179    |  
|Total current liabilities                                              |   | 246,779    |  
|                                                                       |   |            |  
|Accrued reclamation costs                                              |   | 18,000     |  
|Obligation under capital lease-non-current                             |   | 55,571     |  
|Notes payable-non-current                                              |   | 293,942    |  
|                                                                       |   |            |  
|Total liabilities                                                      |   | 614,292    |  
|                                                                       |   |            |  
|Stockholders equity:                                                  |   |            |  
|Preferred
      stock, no par value; 1,000,000                         |   |            |  
|shares authorized; no shares issued or outstanding                     |   |            |  
|Common
      stock, no par value; 50,000,000 shares                    |   |            |  
|authorized; 31,282,012 shares issued and outstanding                   |   | 6,546,350  |  
|Deficit
      accumulated during the development stage                 |   | (4,117,715 | )
|Accumulated other
      comprehensive income                           |   |            |  
|Unrealized gain in marketable equity security                          |   | 430,697    |  
|Total stockholders equity                                             |   | 2,859,332  |  
|                                                                       |   |            |  
|Total liabilities and stockholders equity                             | $ | 3,473,624  |  

3

The accompanying notes are an integral part of the financial
statements.

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NEW JERSEY MINING COMPANY(A Development Stage
Company) STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)For the Three and Nine Month Periods ended September 30, 2007 and
2006 and for the period from inception (July 18, 1996) through September 30,
2007(Unaudited)

From Inception(July 18, 1996)ThroughSeptember 30, 2007
      
      
      September 30, 2006
      
      
      September 30, 2007Three Months
      
      
      Nine Months
      
      
      Three Months
      
      
      Nine MonthsRevenue:Sales of gold
      $
      
      
      $
      43,250
      
      $
      
      
      $
      40,429
      
      $
      92,959Sales of concentrate
      
      
      
      
      50,507
      
      
      116,947
      
      
      254,982
      
      
      601,168Total revenue
      
      
      
      
      93,757
      
      
      116,947
      
      
      295,411
      
      
      694,127Cost and expenses:Production costs
      
      24,683
      
      
      223,979
      
      
      137,235
      
      
      384,120
      
      
      800,011Management
      
      67,174
      
      
      198,372
      
      
      56,344
      
      
      167,032
      
      
      846,880Exploration
      
      146,257
      
      
      371,196
      
      
      54,861
      
      
      182,253
      
      
      1,461,782Gain on sale of
        mineral property
      
      
      
      
      
      
      
      
      
      
      (90,000
      )
      
      (90,000
      )Depreciation and amortization
      
      49,424
      
      
      105,720
      
      
      40,109
      
      
      84,912
      
      
      286,295General and administrative
        expenses
      
      111,413
      
      
      305,960
      
      
      80,084
      
      
      248,658
      
      
      1,491,395Total
        operating expenses
      
      398,951
      
      
      1,205,227
      
      
      368,633
      
      
      976,975
      
      
      4,796,363Other (income) expense:Timber sales (net)
      
      
      
      
      (487
      )
      
      793
      
      
      800
      
      
      (51,389
      )Royalties and
        other income
      
      
      
      
      (1,501
      )
      
      
      
      
      (591
      )
      
      (69,815
      )Royalty expense
      
      500
      
      
      6,203
      
      
      3,115
      
      
      12,592
      
      
      33,278Gain on sale of
        marketable equity security
      
      (37,598
      )
      
      (37,598
      )
      
      
      
      
      
      
      
      (37,598
      )Interest income
      
      (5,437
      )
      
      (22,288
      )
      
      (839
      )
      
      (1,308
      )
      
      (26,389
      )Interest expense
      
      9,214
      
      
      16,754
      
      
      1,662
      
      
      7,183
      
      
      46,442Write off of goodwill
      
      
      
      
      
      
      
      
      
      
      
      
      
      30,950Write off of investment
      
      
      
      
      
      
      
      
      
      
      
      
      
      90,000Total
        other (income) expense
      
      (33,321
      )
      
      (38,917
      )
      
      4,731
      
      
      18,676
      
      
      15,479Net loss
      
      365,630
      
      
      1,072,553
      
      
      256,417
      
      
      700,240
      
      
      4,117,715Other comprehensive income:Unrealized (gain)
        loss on marketableequity
        security
      
      555,553
      
      
      480,553
      
      
      
      
      
      
      
      
      (430,697
      )Comprehensive loss
      $
      921,183
      
      $
      1,553,106
      
      $
      256,417
      
      $
      700,240
      
      $
      3,687,018Net loss per common share-basic
      $
      0.01
      
      $
      0.04
      
      $
      0.01
      
      $
      0.03
      
      $
      0.24Weighted average common sharesoutstanding-basic
      
      30,815,001
      
      
      30,349,480
      
      
      27,288,985
      
      
      25,926,513
      
      
      16,839,983


4

The accompanying notes are an integral part of these
financial statements.

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NEW JERSEY MINING COMPANY(A Development Stage
Company) STATEMENTS OF CASH FLOWSFor the Nine-Month Periods
ended September 30, 2007 and 2006 and for the period from inception (July
18, 1996) through September 30, 2007(Unaudited)

|                                                               |   |               |   |   |               |   |   | From Inception     |  
|-------------------------------------------------------------- | - | ------------- | - | - | ------------- | - | - | ------------------ | -
|                                                               |   |               |   |   |               |   |   | (July 18, 1996)    |  
|                                                               |   | September 30, |   |   | September 30, |   |   | Through            |  
|                                                               |   | 2007          |   |   | 2006          |   |   | September 30, 2007 |  
|Cash flows from operating activities:                          |   |               |   |   |               |   |   |                    |  
|Net loss                                                       | $ | (1,072,553    | ) | $ | (700,240      | ) | $ | (4,117,715         | )
|Adjustments to reconcile net loss to
      net cash            |   |               |   |   |               |   |   |                    |  
|used by
      operating activities:                            |   |               |   |   |               |   |   |                    |  
|Depreciation and amortization                                  |   | 105,720       |   |   | 84,912        |   |   | 286,295            |  
|Write-off of equipment                                         |   |               |   |   |               |   |   | 11,272             |  
|Write-off of goodwill and investment                           |   |               |   |   |               |   |   | 120,950            |  
|Gain on sale of mineral property                               |   |               |   |   | (90,000       | ) |   | (90,000            | )
|Gain on sale of marketable equity securities                   |   | (37,598       | ) |   |               |   |   | (37,598            | )
|Stock issued for:                                              |   |               |   |   |               |   |   |                    |  
|Management and directors fees                                  |   | 62,250        |   |   | 51,438        |   |   | 586,787            |  
|Services and other                                             |   | 16,700        |   |   | 56,736        |   |   | 150,854            |  
|Exploration                                                    |   | 22,560        |   |   |               |   |   | 58,881             |  
|Change in:                                                     |   |               |   |   |               |   |   |                    |  
|Inventories                                                    |   | 95,610        |   |   | 23,216        |   |   | (36,476            | )
|Accounts receivable                                            |   | 13,628        |   |   | (46,190       | ) |   |                    |  
|Interest receivable                                            |   | (2,826        | ) |   |               |   |   | (2,826             | )
|Other assets                                                   |   |               |   |   |               |   |   | (778               | )
|Accounts payable                                               |   | (49,694       | ) |   | (42,710       | ) |   | 59,968             |  
|Accrued payroll and related
      payroll expenses             |   | 10,755        |   |   | 23,037        |   |   | 42,276             |  
|Accrued reclamation costs                                      |   |               |   |   |               |   |   | 18,000             |  
|Net cash used by operating activities                          |   | (835,448      | ) |   | (639,801      | ) |   | (2,950,110         | )
|Cash flows from investing activities:                          |   |               |   |   |               |   |   |                    |  
|Purchases of property,
      plant, and equipment              |   | (184,147      | ) |   | (300,319      | ) |   | (966,087           | )
|Purchases of mineral property                                  |   |               |   |   |               |   |   | (10,404            | )
|Proceeds from sale of
      mineral property                   |   |               |   |   | 120,000       |   |   | 120,000            |  
|Purchase of reclamation bonds                                  |   | (121,176      | ) |   |               |   |   | (123,676           | )
|Proceeds from maturity
      of certificates of deposit        |   | 200,000       |   |   |               |   |   |                    |  
|Purchase of marketable equity
      securities                 |   |               |   |   | (7,500        | ) |   | (7,500             | )
|Proceeds from sale of
      marketable equity securities       |   | 38,095        |   |   |               |   |   | 38,095             |  
|Cash of acquired companies                                     |   |               |   |   |               |   |   | 38,269             |  
|Deferral of development
      costs                            |   | (126,341      | ) |   |               |   |   | (351,876           | )
|Net cash used by investing
      activities                    |   | (193,569      | ) |   | (187,819      | ) |   | (1,263,179         | )
|Cash flows from financing activities:                          |   |               |   |   |               |   |   |                    |  
|Exercise of stock purchase warrants                            |   | 120,000       |   |   |               |   |   | 797,600            |  
|Sales of common stock,
      net of issuance costs             |   | 1,278,319     |   |   | 1,320,000     |   |   | 3,970,626          |  
|Principal payments on capital lease                            |   | (26,206       | ) |   | (16,582       | ) |   | (110,625           | )
|Principal payments on
      notes payable                      |   | (31,115       | ) |   |               |   |   | (55,510            | )
|Net cash provided by
      financing activities                |   | 1,340,998     |   |   | 1,303,418     |   |   | 4,602,091          |  
|Net change in cash                                             |   | 311,981       |   |   | 475,798       |   |   | 388,802            |  
|Cash, beginning of period                                      |   | 76,821        |   |   | 16,863        |   |   | 0                  |  
|Cash, end of period                                            | $ | 388,802       |   | $ | 492,661       |   | $ | 388,802            |  
|Supplemental disclosure of cash flow information:              |   |               |   |   |               |   |   |                    |  
|Interest paid in cash                                          | $ | 16,754        |   | $ | 7,183         |   | $ | 37,078             |  
|Non-cash investing and financing activities:                   |   |               |   |   |               |   |   |                    |  
|Common stock issued
      for:                                 |   |               |   |   |               |   |   |                    |  
|Property,
      plant, and equipment                           | $ | 7,000         |   | $ | 12,200        |   | $ | 41,526             |  
|Mineral properties                                             |   |               |   |   |               |   | $ | 279,300            |  
|Payment of
      accounts payable                              | $ | 12,205        |   |   |               |   | $ | 12,205             |  
|Acquisitions of companies, excluding cash                      |   |               |   |   |               |   | $ | 743,653            |  
|Capital lease obligation incurred for
      equipment acquired |   |               |   | $ | 23,690        |   | $ | 178,588            |  
|Notes payable issued
      for property and equipment acquired | $ | 401,112       |   | $ | 33,927        |   | $ | 446,399            |  

5

The accompanying notes are an integral part of these
financial statements.

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New Jersey Mining Company Notes to Financial Statements
(Unaudited)

1.          
Basis of Presentation:

The unaudited financial statements have been prepared by the
Company in accordance with accounting principles generally accepted in the
United States of America for interim financial information, as well as the
instructions to Form 10-QSB. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of the Companys management,
all adjustments (consisting of only normal recurring accruals) considered
necessary for a fair presentation of the interim financial statements have been
included. Operating results for the three and nine month periods ended September
30, 2007, are not necessarily indicative of the results that may be expected for
the full year ending December 31, 2007.

For further information refer to the financial statements and
footnotes thereto in the Companys Annual Report on Form 10-KSB for the year
ended December 31, 2006.

The Company presents its financial statements in accordance
with Statement of Financial Accounting Standards (SFAS) No. 7, Accounting for
Development Stage Entities, as management believes that while the Companys
planned principal operations have commenced, the revenue generated from them is
not sufficient to cover all corporate costs. Additional development of the
Companys properties is necessary before a transition is made to reporting as a
production stage company.

2.          
Description of Business

New Jersey Mining Company (the Company) was incorporated as
an Idaho corporation on July 18, 1996. The Company's primary business is
exploring for and developing gold, silver and base metal mining resources in
Idaho.

3.          
Net Loss Per Share

SFAS No. 128, Earnings per Share, requires dual presentation
of basic earnings per share (EPS) and diluted EPS on the face of income
statements for all entities with complex capital structures. Basic EPS is
computed as net income divided by the weighted average number of common shares
outstanding for the period. Diluted EPS reflects the potential dilution that
could occur from common shares issuable through stock options, warrants, and
other convertible securities. For the three and nine month periods ended
September 30, 2007 and 2006, the effect of the Companys outstanding warrants
would have been anti-dilutive. Accordingly, only basic EPS is presented. As of
September 30, 2007, the Company had 6,893,400 outstanding warrants that could
potentially dilute basic EPS in the future.

4.          
Reclassifications

Certain prior period amounts have been reclassified to conform
to the 2007 financial statement presentation. These reclassifications have no
effect on net loss as previously reported.

5.          
Reclamation Bonds

Various laws and permits require that financial assurances be
in place for certain environmental and reclamation obligations and other
potential liabilities. The reclamation bond balance at September 30, 2007,
represents an investment in U.S. government agency bonds. The bonds are
restricted to ensure that reclamation is performed at certain properties where
the Company is conducting mining and exploration activities.

6

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6. **Adoption of New Accounting Principles**

On January 1, 2007, the Company adopted SFAS No. 155
Accounting for Certain Hybrid Financial Instruments, which amends SFAS No. 133
Accounting for Derivative Instruments and Hedging Activities and SFAS No. 140
Accounting for Transfers and Servicing of Financial Assets and Extinguishments
of Liabilities. SFAS No. 155 resolves issues addressed in Statement 133
Implementation Issue No. D1 Application of Statement 133 to Beneficial
Interests in Securitized Financial Assets, and:

- Permits fair value remeasurement for any hybrid financial instrument that
  contains an embedded derivative that otherwise would require bifurcation;
- Clarifies which interest-only strips are not subject to the requirements
  of SFAS No. 133;
- Establishes a requirement to evaluate interests in securitized financial
  assets to identify interests that are freestanding derivatives or that are
  hybrid financial instruments that contain an embedded derivative requiring
  bifurcation;
- Clarifies that concentrations of credit risk in the form of subordination
  are not embedded derivatives; and
- Amends SFAS No. 140 to eliminate the prohibition on a qualifying
  special-purpose entity from holding a derivative financial instrument that
  pertains to a beneficial interest other than another derivative financial
  instrument.

The Company adopted SFAS No. 155 using the modified prospective
transition method, which requires the application of the accounting standard as
of January 1, 2007. There was no impact on the financial statements as of and
for the three and nine month periods ended September 30, 2007 as a result of the
adoption of SFAS No 155. In accordance with the modified prospective transition
method, the financial statements for prior periods have not been restated to
reflect, and do not include, the impact of SFAS No. 155.

On January 1, 2007, the Company adopted Financial Accounting
Standards Board Interpretation No. 48 (FIN No. 48) Accounting for Uncertainty
in Income Taxes. FIN No. 48 clarifies the accounting for uncertainty in income
taxes recognized in accordance with SFAS No. 109 Accounting for Income Taxes,
prescribing a recognition threshold and measurement attribute for the
recognition and measurement of a tax position taken or expected to be taken in a
tax return. In the course of our assessment, we have determined that we are
subject to examination of our income tax filings in the United States and state
jurisdictions for the 2004 through 2006 tax years. In the event that the Company
is assessed penalties and or interest, penalties will be charged to other
operating expense and interest will be charged to interest expense.

The Company adopted FIN No. 48 using the modified prospective
transition method, which requires the application of the accounting standard as
of January 1, 2007. There was no impact on the financial statements as of and
for the three and nine month periods ended September 30, 2007 as a result of the
adoption of FIN No. 48. In accordance with the modified prospective transition
method, the financial statements for prior periods have not been restated to
reflect, and do not include, the impact of FIN No. 48.

7.          
New Accounting Pronouncements

In February 2007, the Financial Accounting Standards Board
(FASB) issued SFAS No. 159, The Fair Value Option for Financial Assets and
Financial Liabilities (SFAS 159), which will permit entities to choose to
measure many financial assets and financial liabilities at fair value.
Unrealized gains on items for which the fair value option has been elected are
to be reported in earnings. SFAS 159 will become effective in our 2008 financial
statements. We have not yet determined the effect that adoption of SFAS 159 may
have on our results of operations or financial position.

In September 2006, the FASB issued SFAS No. 157, Fair Value
Measurements, (SFAS 157), which will become effective in our 2008 financial
statements. SFAS 157 establishes a framework for measuring fair value and
expands disclosure about fair value measurements, but does not require any new
fair value measurements. We have not yet determined the effect that adoption of
SFAS 157 may have on our results of operations or financial position.

7

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Item 2: MANAGEMENT'S DISCUSSION, PLAN OF OPERATIONS,
ANALYSIS OF FINANCIAL CONDITION, AND RESULTS OF OPERATIONS

Plan of Operation

The Company conducts exploration for gold, silver and base
metal deposits in the greater Coeur dAlene Mining District of northern Idaho.
The Company also has a strategy to conduct mining and mineral processing
operations on higher grade ore reserves it has located on its exploration and
development properties. The financial strategy is to generate cash from these
operations to pay for corporate expenses and to provide additional funds for
exploration, thus reducing the need to raise funds through financing activities
including sale of common stock. The strategy includes finding and developing ore
reserves in order to increase production of gold, silver, and base metals.

The Company has four properties at which most exploration and
development is being conducted; the Niagara, the Golden Chest, the Silver
Strand, and the Coleman. A significant amount of exploration is also being
conducted in the East Fork of Eagle Creek to find new gold properties. The
Niagara copper-silver deposit was acquired during late 2006. The Niagara deposit
was drilled in the 1970s, and although more drilling is needed, the Company is
conducting economic studies to determine if the deposit can be mined profitably.
Production of gold ore at the Golden Chest mine is suspended while a ramp is
being driven to access a block of reserves discovered by drilling from the
surface. Preparations are being made for production of silver-gold ore at the
Silver Strand mine starting in the third quarter of 2008. A drift on the vein at
the Coleman underground mine exposed some ore grade mineralization during the
second quarter, but drifting was suspended during the entire third quarter
because the mining crew was sent to the Silver Strand. Production from the
reserves at the Coleman mine, from material mined from the Coleman underground
exploratory drifting operation, and possibly from the Golden Chest ramp will be
processed for the next three quarters.

At the Silver Strand mine, development of infrastructure
continued during the quarter. A road was completed to the rock storage site, a
new adit was started and a wastewater collection system was completed. Drilling
of a geophysical anomaly was commenced near the end of the third quarter.

Management also thinks exploration in the New Jersey mine area
has promising potential. Previous drilling has indicated higher grade
mineralization in the North Coleman vein area and at the Scotch Thistle
prospect. Drifting will resume on the 740 level Coleman vein when work at the
Silver Strand is suspended for the winter season on November 1, and further
drilling may be conducted.

In the 2007 season, exploration is being conducted in the Eagle
Creek area just north and east of Murray, Idaho where the Golden Chest mine is
located. The Companys exploration program has been very successful in finding
new drilling targets. During the quarter, another new prospect called the Golden
Reward was located where wide zones of gold mineralization were detected by soil
and float sampling. Together with the Gold Butte and Mineral Ridge prospects the
Company has three prospects which have wide zones of gold mineralization in the
Eagle Creek area. The Niagara deposit, which was acquired as part of the 2006
exploration effort, was examined for open pit mining potential during the
quarter. The open pit study has so far indicated that closer spaced drilling is
needed, but that the deposit may be amenable to open pit mining. Sampling of the
outcrop of the Niagara deposit during the quarter revealed that the
mineralization contains a significant gold credit which may improve the
economics of mining if the gold is pervasive in the deposit. The Company
acquired a core drilling rig on July 1st, 2007 and drilling
operations started early in the third quarter. The backlog of drilling targets
is sufficient to keep drilling operations going on a continual basis. Operating
permits have been submitted to the U.S. Forest Service for exploration drilling
in the Eagle Creek area and were received early in the fourth quarter. The
Companys long term objective in the greater Murray area is to establish enough
ore reserves to justify construction of a larger mineral processing plant in the
area. A feasibility study for the processing plant has commenced with a
pre-feasibility report due in about 12 months.

Commissioning of the concentrate leach circuit at the New
Jersey mineral processing plant continued during the quarter with only a few
remaining tasks to be completed in the fourth quarter. Concentrate will be
leached and a

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gold-silver dore produced for sale. The reason for adding the
concentrate leach circuit was to obtain more revenue compared to selling
concentrates by increasing recovery and eliminating concentrate freight as well
as to avoid any potential difficulties in marketing concentrates.

Financial Condition-The Company maintains an adequate cash
balance by increasing or decreasing its exploration and development expenditures
as limited by availability of cash from operations or from financing activities.
The cash balance on September 30, 2007 was $388,802, a decrease from $537,923 at
the end of the second quarter. Figure 1 shows the corresponding balances for
previous accounting periods.



Results of Operations-There was no revenue for the third
quarter 2007 as in-process inventories were being built in the concentrate leach
plant as compared to $116,947 in the third quarter of 2006. Figure 2 shows the
net loss for the third quarter of 2007 of $365,630 and the net losses in
previous accounting periods. The net loss increased in the third quarter of 2007
compared to the third quarter of 2006 because of the lack of revenue and higher
exploration and general and administrative costs.



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Gold and silver production in pyrite concentrates were 24
ounces and 126 ounces, respectively, in the third quarter compared to 196 ounces
and 0 ounces, respectively, for the third quarter of 2006. Gold production was
lower in 2007 due to lower grade ore than 2006 and fewer tonnes processed. Gold
production is expected to remain about 30 ounces per quarter until the third
quarter of 2008 and then to increase, along with silver production, when Silver
Strand ore processing starts.

Mining operations at the Golden Chest mine are expected to be
suspended until mid to late 2008 while the access ramp is being extended to the
Idaho vein reserves. Once the Idaho vein ramp development is completed there
will be enough reserves for more than 10 years of mining at the current rate of
4,000 tonnes/year. If a larger mill is built in the Murray area, the production
rate from Idaho vein reserves would be increased.

Mining operations were planned to start at the Silver Strand
mine in the third quarter but have been delayed because of poor ground
conditions in driving the new adit. The Silver Strand operation is seasonal with
the season ending on October 31 and re-starting on May 1. It is expected that
the adit will be completed in the second quarter of 2008 and production will
start in the third quarter of 2008. Operating results at the Silver Strand mine
will depend upon the price of silver as well as gold. Present silver and gold
prices are sufficient in managements estimation to generate a gross profit at
the Silver Strand mine based on the operating plan which was part of the
permitting process.

No major capital expenditures are required for the mineral
processing plant for the remainder of 2007. Mill feed will come from the Coleman
open pit, and Coleman underground through the second quarter of 2008.

The amount of money to be spent on exploration at the Companys
mines and prospects will depend upon the amount of money raised by financing
activities. Basically, management expects to be able to continue the present
operating scenario with its three active mines and mineral processing plant
indefinitely, but expanded exploration or production activities depend upon the
results of financing activities.

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Item 3. CONTROLS AND PROCEDURES

An evaluation was performed by the Companys president and
principal financial officer of the effectiveness of the design and operation of
the Companys disclosure controls and procedures. Upon that evaluation, the
Companys president and principal financial officer concluded that disclosure
controls and procedures were effective as of September 30, 2007, in ensuring
that all material information required to be filed in this quarterly report has
been made known to them in a timely fashion.

As disclosed in our 2006 Form 10KSB, it was determined that
there were material weaknesses affecting our internal control over financial
reporting. These material weaknesses are as follows:

- The Company lacks proper segregation of duties. As with any company the
  size of the Companys, this lack of segregation of duties is due to limited
  resources.
- The Company lacks accounting personnel with sufficient skills and
  experience to ensure proper accounting for complex, non-routine transactions.

Managements Remediation Initiatives

We are aware of these material weaknesses and have procedures
in place to ensure that independent review of material transactions is
performed. In addition, we plan to consult with independent experts when complex
transactions are entered into.

There has been no change in the Companys internal controls
over financial reporting during the quarter ended September 30, 2007, that has
materially affected, or is reasonably likely to materially affect, the Companys
internal controls over financial reporting.

PART II - OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

None

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
PROCEEDS.

Neither the constituent instruments defining the rights of the
registrants securities filers nor the rights evidenced by the registrants
outstanding common stock have been modified, limited or qualified.

During the third quarter of 2007 the Company initiated an
offering to certain accredited and sophisticated investors. No underwriters or
brokers were involved in the sale and therefore no commissions were paid. Units
are being sold for $0.35 and included one share of the Companies restricted
common stock and one warrant which entitles the holder to purchase an additional
share of the Companies restricted common stock for $0.50 until August 31, 2009.
During the third quarter 722,857 units valued at $253,000 were sold in
connection with this private placement. Both the common stock and the common
stock underlying the warrants are restricted as defined under Rule 144. In
managements opinion, the offer and sale of the securities were made in reliance
on exemptions from registration provided by Section 4(2) and Rule 506 of
Regulation D of the Securities Act of 1933, as amended and other applicable
Federal and state securities laws.

The Company issued 43,125 shares of restricted common stock to
President Fred W. Brackebusch for management services rendered in the third
quarter of 2007. The shares were valued at a price of $0.47 per share. In
managements opinion, the securities were issued pursuant to exemption from
registration under Section 4(2) of the Securities Act of 1933, as amended.

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During the third quarter of 2007, the Company issued 3,750
shares at an average price of $0.80 to other accredited and sophisticated
individuals for goods and services and 6,000 shares at an average price of $0.50
to certain hourly employees for service awards during the year. In managements
opinion, the securities were issued pursuant to exemptions from registration
under Section 4(2) of the Securities Act of 1933, as amended.

Item 3. DEFAULTS UPON SENIOR SECURITIES

The Company has no outstanding senior securities.

Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None

Item 5. OTHER INFORMATION

None

Item 6. EXHIBITS AND REPORTS ON FORM 8-K

|Exhibit |                                                                                                                                        
|------- | ---------------------------------------------------------------------------------------------------------------------------------------
|Number  | Description                                                                                                                            
|        |                                                                                                                                        
|31.1    | Certification pursuant
      to Section 302 of the Sarbanes-Oxley act of 2002.                                                         
|        |                                                                                                                                        
|32.1    | Certification
        pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
        of the Sarbanes-Oxley Act of 2002.

Reports on Form 8-K.

None

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SIGNATURES

****Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

| | **NEW JERSEY MINING COMPANY**
| | -----------------------------
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| | By:                          
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| | By:                          
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